MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 22, 2015 (REPORT 42)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices are lower. 
Production remains strong. Spot demand is mixed as some sellers report 
being tight on supplies while others cannot find buyers. Contracts are 
being filled and negotiations for 2016 are underway. Pricing continues to 
be an issue as sellers believe NDM is under-valued currently, while 
buyers are saying the price increases are sentimental. Sources note 
producers are willing to store product until prices get to desired 
levels. High heat NDM prices in the Central region are steady to 
increasing. Production is limited even though demand is picking up for 
baking season. Manufacturers report not having enough drying space for 
high heat NDM as other products are more profitable.
EAST: Prices for low/medium nonfat dry milk moved lower in the range, 
based on regional f.o.b spot pricing. Production is steady at most drying 
facilities; however, there are indications of some decline in overall 
production with reports of dryers being down. Some buyers are in a "wait-
and-see" mode prior to stepping back into the market, as they anticipate 
prices will move lower. Price drops in the low/medium heat NDM market, as 
noted by some market participant, have not stimulated the expected level 
of interest from some cheese markets. Overall, low/medium nonfat dry milk 
demand is fair to good. Producers' inventories range from fair to ample. 
Regional prices for high heat nonfat dry milk moved higher. Stocks are 
reportedly tight. Production schedules for high heat nonfat dry milk is 
usually dependent on available processing time and customer needs. The 
NDM market undertone is steady to weak.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9200 - 1.0900         MOSTLY:   .9600 - 1.0000              
HIGH HEAT:        1.1000 - 1.2000                                               



Dairy Market News Reporting Changes Proposal

Dairy Market News (DMN) is proposing updating the Dairy Market News 
Working Guidelines. This proposal is the result of an industry comment 
period. The updates would allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market pricing 
information is collected for first sale, f.o.b. producers' plants or
warehouses. The changes would be effective starting with Report 1, 
January 2016.


Comment by October 30, 2015 to: DMN@ams.usda.gov
Link to current DMN working guidelines: http://www.ams.usda.gov/market-
news/individual-dairy-market-news-commodity-reports


1100CT Daniel.Johnson@ams.usda.gov/Tara.Herbst@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7006
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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